Having learnt a lesson from the division of Andhra Pradesh in 2014 when Telangana walked away with Hyderabad — where industries were centralised ahead of the bifurcation — the government now does not want to put all its eggs in one basket.
Published Dec 23, 2024 | 4:46 PM ⚊ Updated Dec 23, 2024 | 4:46 PM
Chandrababu Naidu inaugurating Amaravati Drone Summit 2024. File photo
The TDP-led NDA government in Andhra Pradesh is keen to prevent the concentration of industries in Amaravati alone by decentralising them across the state.
Having learnt a lesson from the division of Andhra Pradesh in 2014 when Telangana walked away with Hyderabad — where industries were centralised ahead of the bifurcation — the government now does not want to put all its eggs in one basket.
The state lost its cash cow to Telangana and even after 10 years, it is yet to recover from the colossal loss.
The TDP is seeking to distribute development across the state, particularly industries. It promotes investments after thoroughly researching the state’s geography and finding the right area for different industries.
Chief Minister N Chandrababu Naidu considered several factors before releasing an industrial policy that would ensure equitable distribution of industries across the state.
The government had researched the opportunities available for the state, and by regions, and whether there was enough infrastructure available for a specific sector to thrive.
The government has also made a preliminary study on whether the existing infrastructure would be enough and whether any improvement was required.
A joint venture between ArcelorMittal and Nippon Steel India (AM/NS India) proposed setting up an integrated steel plant in Anakapalli district with a production capacity of 17.8 million tonnes with an investment of ₹1.4 lakh crore. This project, when implemented, will become one of the largest projects initiated in the country in recent times
In the first phase, the company plans to invest ₹80,000 crore to set up a blast furnace with an annual production capacity of 7.3 million tonnes.
For this, the company has sought 2,600 acres of land, which has been approved by the Andhra Pradesh government.
In the second phase, an additional investment of ₹60,000 crore will be required to increase production capacity by another 10.5 million tonnes. This expansion of the steel plant might require an allotment of another 2,000 acres of land. The state government has estimated that the project will provide direct and indirect employment to about one lakh people.
About 14 pharma companies are already located in Atchutapuram, Nakkapalli and Anakapalli of the Visakhapatnam district in North Andhra. However, the state government wants to expand the infrastructure to land investments in the pharma sector.
It has indicated that bulk drug manufacturers have shown interest in investing in Visakhapatnam and Srikakulam districts.
The state government is also keen on attracting investments in the semiconductors sector in Atchutapuram and Anakapalli. Those who are interested in setting up their units have already sought land allotment from the state government.
Visakhapatnam, the industrial hub of the state, has several companies in the private and public sectors.
The state government signed a Memorandum of Understanding (MoU) with Google for setting up an artificial intelligence (AI) data centre in Visakhapatnam on 11 December. The project is expected to make Andhra Pradesh a partner in Google’s strategic plans and operations in India.
Further, the Godavari districts are expected to become hubs for aquaculture, processing, and exports. The coalition government is providing incentives to advance this sector. As part of this initiative, an aqua park will come up in the West Godavari district.
The Orvakal Mega Industrial Hub in the Kurnool district spread over 9,800 acres is in the works for industries, including the semiconductor sector.
It is expected that ₹14,000 crore investments would flow into the industrial hub. In February, a Japanese company is expected to sign an MoU with the state government to set up its units in the park. A drone manufacturing industry with an investment of ₹3,000 crore is also planned in the district.
Plans are in place to establish large-scale electric vehicle (EV) industries in Anantapur. In Kopparthi in the YSR Kadapa district infrastructure development is happening in an area of 2,596 acres with an investment of ₹2,137 crore. In Tirupati District’s Sri City, Chandrababu Naidu inaugurated 15 new industries on 20 August, including those from companies like LG Chem, Neolink (Israel), Nidec (Japan), Bell (Germany), and others.
Chittoor and Anantapur districts are home to one of the largest clusters of fruits and vegetables in India, contributing 25 percent of the growth of this sector. Srinivasa Food Park in Chittoor spread over 147 acres, is designed with world-class infrastructure and has been recognised by the Union government.
At the same time, efforts are underway to develop Amaravati as an Information Technology (IT) hub, in line with Hyderabad’s HITEC City. Proposals have been made to construct an “Iconic Building” for software development.
Sources from TDP said the IT sector is very close to Chandrababu Naidu’s heart and he always prides himself on developing Cyberabad in Hyderabad which has become a major IT hub.
With a 975 km coastline, proximity to ports, airports, and the Godavari and Krishna rivers passing through, Andhra Pradesh is strategically positioned for its proximity to Chennai, Bengaluru, and Hyderabad. In 2018, Andhra Pradesh was ranked first in “Ease of Doing Business” in India with a score of 98.42 percent, according to a World Bank report.
Speaking to South First, Industries Minister TG Bharat said: “Andhra Pradesh is conducive for the growth of industries. As investors have a lot of faith in Chandrababu Naidu, they are preparing to invest big in Andhra Pradesh.”
(Edited by Muhammed Fazil.)
